CESTAT Chennai Deletes ₹10.26 Lakh Service Tax Demand On Mayajaal Over Revenue-Sharing Model

On 29 June, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that amounts retained by Mayajaal Entertainment Ltd. under revenue-sharing arrangements with restaurant and retail operators are not liable to service tax as Business Support Service. Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. allowed the appeal filed by Tvl. Mayajaal Entertainment Ltd. Following its earlier decision in the company's own case, the Tribunal set aside the...

Gujarat High Court Denies SVLDRS Benefit For Unquantified Tax Liability Before 30 June 2019 Cut-Off

The Gujarat High Court on 18 June 2026 held that a taxpayer cannot claim benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) merely on the basis of admitting part of its tax liability during investigation, and that the entire tax liability must be quantified on or before the statutory cut-off date of 30 June 2019 for eligibility under the Scheme. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed the writ petition filed by Planet...

Gujarat High Court Restricts Excise Rebate In Coke Exports, Rejects Moisture Loss Claim

The Gujarat High Court on 19 June held that Rule 18 of the Central Excise Rules, 2002 allows rebate only on the quantity of goods actually exported and not on the higher quantity cleared from the factory on payment of excise duty. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed a batch of petitions filed by Mahashakti Coke, which challenged the denial of rebate on the differential quantity of metallurgical coke. The Court held: “The expression 'duty paid on such...

Glucometers Are Instruments For Chemical Analysis, Not Medical Diagnostic Devices For Customs Duty: CESTAT Mumbai

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that glucometers are classifiable as instruments for chemical analysis and not as medical diagnostic instruments for customs purposes. Upholding the Commissioner (Appeals)' order in favour of Life Scan Medical Devices India Pvt. Ltd., the tribunal dismissed the Customs Department's appeal. The bench of Judicial Member Ajay Sharma and Technical Member M. M. Parthiban examined the scientific functioning...

CESTAT Delhi Cuts Customs Duty Demand From ₹5.53 Crore To ₹7.9 Lakh Over Arbitrary Revaluation of Imported Good

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has reduced a customs duty demand against Jaipur-based watch manufacturer Rochi Ram & Sons from about ₹5.53 crore to ₹7.9 lakh. It held that Customs authorities did not follow the valuation procedure prescribed under the Customs Valuation Rules after rejecting the declared import values. A tribunal comprising Judicial Member Rachna Gupta and Technical Member P.V. Subba Rao observed that Customs authorities were...

CESTAT Kolkata Says Customs Supervision Charges Payable On MOT, Not CRC, For Limited Deployment

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹1.37 crore demand raised against a duty-free shop operator. A coram comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that customs supervision charges could only be recovered on a Merchant Over Time (MOT) basis and not on a Cost Recovery Charges (CRC) basis where customs officers were utilized only for limited hours. It held that the Revenue could not demand CRC...

HSN Mismatch In Certificate Of Origin Alone Cannot Deny Customs Exemption: CESTAT Chennai

On 25 June, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a discrepancy in the HSN classification mentioned in a Certificate of Origin cannot, by itself, justify denial of a customs exemption when the imported goods are otherwise correctly classifiable under the Customs Tariff Act. Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. allowed the appeal and set aside the demand of Rs.14.50 lakh against the importer of Clear Float...

CESTAT Kolkata Dismisses Revenue's Appeal Seeking Reversal Of Allahabad Bank's ₹20 Crore CENVAT Credit

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the dropping of a service tax demand of nearly ₹20 crore against Allahabad Bank. It held that the bank had paid the service tax before availing CENVAT credit, even though the corresponding invoices were issued later. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan dismissed the Revenue's appeal after examining the invoices and remittance records.The tribunal observed,"The...

Tax Department Cannot Dictate CENVAT Credit Compliance Method: CESTAT Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that tax authorities cannot compel a taxpayer to adopt a particular method of complying with its obligations under the CENVAT Credit Rules. Setting aside the CENVAT credit and service tax demands, along with the interest and penalties, the tribunal ruled that the choice of compliance rests with the taxpayer. A bench of Officiating President Dr. Rachna Gupta and Technical Member Subba...

CESTAT Bangalore Sets Aside Service Tax Demand On Vacant Land Leased By New Mangalore Port Trust Before July 2010

The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the balance service tax demand raised against New Mangalore Port Trust on lease and licence fees collected from users of vacant land for the period prior to July 1, 2010. A coram of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi partly allowed the appeal filed by the port trust. “In view of the above, we do not find any justification in sustaining the demand prior to...

Customs Must Follow Valuation Rules Sequentially Before Using Residual Method: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Delhi has held that customs authorities cannot invoke the residual method of valuation without first ruling out the valuation methods that precede it under the Customs Valuation Rules. The ruling resulted in most of the duty demand, confiscation, and penalties imposed on Rochees Time Pvt. Ltd. being set aside. A coram comprising Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao partly allowed Rochees Time...

Customs Cannot Reassess Export Shipping Bills Or Deny DEPB Benefits After Export: CESTAT Delhi

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that Customs authorities cannot alter the value or description of goods after shipping bills have been assessed and exports completed. Any such change must be made through the statutory remedies available under the Customs Act. Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao passed the ruling while allowing appeals filed by Mungad Strips & Alloy Pvt. Ltd. and...